Forever 21 files for bankruptcy, plans to close as many as 178 U.S. stores

By Gary Dinges gdinges@gatehousemedia.com

Monday

Sep 30, 2019 at 2:41 PM

Forever 21 is the latest retailer to file for bankruptcy, unveiling plans to close as many as 178 U.S. stores.

The filing, which was widely expected, was announced over the weekend. A turnaround plan hadn't been working as well as expected, Bloomberg previously reported.

The chain, known for selling trendy clothes at low prices, released a letter to its customers that reads, in part: "Essentially this allows Forever 21 to continue to operate its stores as usual, while the Company takes positive steps to reorganize the business so we can return to profitability and refocus on delivering incredible styles and fashion you love for many years to come. This does NOT mean that we are going out of business – on the contrary, filing for bankruptcy protection is a deliberate and decisive step to put us on a successful track for the future."

Chapter 11 filings are a common way for retailers to exit leases for unprofitable locations. Forever 21 says the number of stores that it will close – currently estimated to be 178 – is still fluid, and could change depending upon how well talks go with landlords for its stores across the country.

There are about 550 Forever 21 stores in the U.S., in addition to locations in several other countries. The California-based chain has 30,000 workers worldwide.

Never miss a story

Choose the plan that's right for you.
Digital access or digital and print delivery.